The worlds most largest national economy in nominal terms. Is the second largest in purchasing power parity (ppp).
representing 22 percent of nominal global gpd and 17 percent of gross world product (gwd)
Answer:
12.44%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
cash floe in yer0 = 200
cash flow in year 1 = -80
cash flow in year 2 = - 70
cash flow in year 2 = - 60
cash flow in year 2 = - 40
irr = 12.44%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
1. b. $896.00
2. c. $317.20
3. a. $578.80
4. b. $67.20
5. d. $4.80
Explanation:
1. WIlliam's total earnings
40 hours at $16 = $640
8 hours at $32 = $256
Total = $896
2. WIlliam's total deductions
Income Tax $200
United Fund deduction $50
Social security tax (6% * $896) $3.76
Medicare tax (1.5% * $896) <u>$13.44</u>
Total <u>$317.20</u>
3. William's net pay
= Total earnings - Total deductions
= $896 - $317.20
= $578.80
Cash Paid is $578.80
4. Employers FICA based on Williams pay
Social Security and Medicare taxes = 7.5% * $869 = $67.20
5. Employers Federal Unemployment based on Williams pay
Federal unemployment tax = 0.8% * $600 = $4.80
Answer:
As a risk minimizer : Stock A has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.
The answer is A and B respectively
Explanation:
The standalone risk or standard deviation of the stocks is alleviated for a well diversified investor . So, in that case, the relevant risk would be the market risk or the beta.
When you see in isolation, relevant risk would be the standard deviation.
Therefore, as a risk minimizer : Stock A has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.
Answer:
The annual rate of return is -2.83%
Explanation:
The annual rate can be calculated from the formula FV=PV*(1+r)^N
Where FV is the future value of the investment
PV is the amount invested which is $276,500
N is 9 years
213600=276,500*(1+r)^9
213600/276500=(1+r)^9
divide index on both sides by 9
(213600/276500)^1/9=1+r
(213600/276500)^1/9-1=r
r=-0.02827109
r=-2.83%
Hence the annual rate of return on the investment is -2.83%, which means the investment depleted by 2.83% from initial invested amount of $276,5000 to $213,600 after nine years
